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CHAPTER 13

CHAPTER 13. IT STRATEGIC PLANNING By MESFIN ABEBE RASHAW Instructor Assoc. Prof. Dr. Mustafa ILKAN. Outline . Introduction What are issues General guideline for IT strategic planning How to develop a plan Discussion, Impact, Detection, Actions of issues

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CHAPTER 13

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  1. CHAPTER 13 IT STRATEGIC PLANNING By MESFIN ABEBE RASHAW Instructor Assoc. Prof. Dr. MustafaILKAN

  2. Outline • Introduction • What are issues • General guideline for IT strategic planning • How to develop a plan • Discussion, Impact, Detection, Actions of issues • Lack of mgt interest once the plan is approved • Difficulty linking IT planning factors to the business • High mgt expectations of the planning effort • Lack of defined business mission or vision

  3. Outline cont… 5) Difficulty of showing the benefits of technology projects in the plan 6) Limited or no resources to do the planning 7) Failure of the past planning efforts 8) Deciding the IT plan should be business driven or IT driven 9) Business being unclear about what they would get from the plan 10) Challenge in turning action items in plan into actions

  4. INTRODUCTION • A number of different methods have been proposed for doing IT strategicplanning • But many of them failed Why??? • They were not pragmatic/practical • They were filled with jargons/meaningless • They were not common sense • While methods change • Issues of IT planning do not often change

  5. So what are these issues Issues of IT strategic planning • Lack of well defined role for mgt and others in the planning process • Who is going to do what is not considered xxx Let’s jut do it • What the plan is really intended to accomplish … not considered • How the plan elements are to be linked to the business not clearly determined • Old saying:- It makes no sense to do the wrong thing perfectly.

  6. General guidelines for IT strategic planning • have some defined method for getting resources andmoney for what? For the action items in the plan after approval • Involve as many managers and staff as you can To get more support for the plan • Try to have about half of the action items in the plan be nonproject/ • i.eThings address policies, procedures, organization, roles • Things that can be done without money

  7. How to develop a plan Plan lists and tables of • Issues and opportunities • objectives • Constraints • Strategies • Action items that can be viewed easily and incrementally

  8. Issues and opportunities • problems and • potential goodthings that can be done related to IT • Use a planning tool SWOT

  9. Objectives • Directional goals for IT • If goals were achieved there issues would disappear

  10. Constraints These are conditions that you have to accept • the business focus • available money and staff and • existing technology Constraints prevent the objectives from being quickly attained

  11. strategies Their purpose is • to get around the constraints, • to get at the issues whilesupporting the objectives Strategic planning • Strategic planning takes you outside the day-to-day activities of your organisation or project. • It provides you with the big picture of what you are doing and where you are going. • It gives you clarity about what you actually want to achieve and how to go about achieving it, rather than a plan of action for day-to-day operations

  12. Strategic planning cont… • Strategic planning enables you to answer the following questions: • Who are we? • What capacity do we have/what can we do? • What problems are we addressing? • What difference do we want to make? • Which critical issues must we respond to? • Where should we allocate our resources?/what should our priorities be?

  13. Strategic planning cont… • The most important things for IT strategic planning are • Focus/issues of relevancy • Synchronization of the organization progress with external exchange • Clarity • Clearly decide what the organization Wants to do in the future • Clear about where we want to go

  14. Action items These are specific measures to support the strategies and objectives They include • policy • organization • roles • procedures and other changes In our experience, good plans have halfor more of the action items in these nonproject categories

  15. LACK OF MANAGEMENT INTEREST ONCE THE PLAN IS APPROVED • Discussion Effort and time were consumed in the IT plan creation. Management reviewedand approved the plan. Why on earth they lose interest? here are somepossible reasons • The managers think that if they approve it, the plan will be executed. • They think their role is over. • Some managers do not want to get involved in implementation.

  16. Lack of mgt interest once the plan is approved discussion cont… Whatever the reason is, • the work on potential projects identified in the actionitems of the plan has not started. • The projects have not been funded. • Noresources have been allocated to the work. • The resource issue is the majorhurdle. If you give resources to someof the planning action items, you take them away from other work(finite limit to pool of resources)

  17. Lack of mgt interest cont…Impact If management doesn’t support the IT project • problems could arise in implementing the plan • People lose interest because they sense a bail out /escape/ by management. • The impactis that the plan ends up on the shelf — unused and ignored. • The negative effects now propagate. Without an effective IT plan, new technologycan enter to the organization on an ad hoc basis. • There is less chance thatthe new project ideas in the plan will ever start and see the light of day. Youmight be able to recover and implement some of the nonproject action itemsthat require no money.

  18. Lack of mgt interest cont…Detection • During the planning effort, is there any interest on management’s part thenwhat happens after the planning effort? • Note that you are not looking for greatinterest. • Upper management has many other activities and issues to deal with.Maybe management will be interested in giving the money. But that is notenough. • The key issue is what will be stopped, shelved, or delayed so that theresources can be placed on the project-oriented action items of the plan.

  19. Lack of mgt interest cont…Actions and preventions Action • plan ahead for the resource issues • Duringthe planning effort, you might review the progress of the current projects andnonproject work. • There is a political reason for the strategic IT plan. • IT managementmay want to control support and maintenance work as well as to shelvesome smaller projects or projects that are not doing well.

  20. Lack of mgt interest Actions and preventions cont… • One benefit IT plan is to provide a basis for making these rather difficultpolitical decisions. • During the planning effort, you want to alert managers that resource issueswill arise later. This is a valuable early warning. You cannot assume that uppermanagement is aware of the resource constraints in IT. • They may perceive thatIT managers complain a lot but still get the work done. So what if you pile ona few more projects?

  21. DIFFICULTY LINKING IT PLANNING FACTORS TOTHE BUSINESS • Discussion Business objectives, mission, and vision are vague and fuzzy. • IT objectivesare more precise Example Suppose the missionstatement is “To improve the efficiency and effectiveness of work and operations.” • Now turn to an IT action item: “Implement a new network monitoringsystem.” Very precise and specific. • How do you link these? It appears to bevery difficult. Actually, it is not.

  22. DIFFICULTY LINKING IT PLANNING FACTORS TOTHE BUSINESS discussion cont… • Let’s move up from the action item to an IT strategy. An applicable IT strategyis “Improve network performance, reliability, and availability.” • OK, thatfits as an umbrella over the action item, but you are a long way from the missionstatement. • Now move up to the IT objective. One that would fit here is “Implementimproved and modernized IT infrastructure.” This fits too, since the networkis part of the infrastructure. • But you are still not linked to the missionelement.What does an “improved and modernized IT infrastructure” have to do withthe business? How does it help the business? Well, the core business processesrely on automation and systems.

  23. DIFFICULTY LINKING IT PLANNING FACTORS TOTHE BUSINESS discussion cont… • This means that the performance of the businessprocesses depends on stable and high-performance infrastructure.What has been covered so far? You went from a detailed action item to theIT strategy and then to the IT objective. • Then you linked the IT objectiveto the business processes. But you are not there yet. What next? You mustcome down from the lofty heights of the mission to the business processes.The improvement of work and operations translates into effective businessprocesses.

  24. DIFFICULTY LINKING IT PLANNING FACTORS TOTHE BUSINESS discussion cont… • Mission statement • Action items(detailed) • IT strategy • IT objective • Link IT objective to the business • Relate mission statement to the business process • Translate improvement of work and operations into effective business processes

  25. DIFFICULTY LINKING IT PLANNING FACTORS TOTHE BUSINESS discussion cont… • The underlying message is that the linkage of IT planning to the mission,vision, or objectives is easiest and most supported through business processes.This inherently makes sense because a basic goal of IT is to support processes. • Another purpose is to provide management with information. • Coming from thebusiness side, there is no way you can attain any business goal without highbusiness process performance.

  26. DIFFICULTY LINKING IT PLANNING FACTORS TOTHE BUSINESS Impact • Because of this perceived difficulty, people often stop in the IT planningeffort with the IT objectives. • Then there is no linkage to the business factors. • Management and business units can then question the value of the plan. Theymay raise the issue of whether IT is aligned to the business. • In the most negativeterms, they may question the investment in IT.

  27. DIFFICULTY LINKING IT PLANNING FACTORS TOTHE BUSINESS Detection • If the IT planning effort concentrates on the IT factors, then you can sensea problem. • The analysis of the business side has to be performed during theplanning effort. • In fact, this is a good place to start. Map the mission, vision,or objectives to the business processes.

  28. DIFFICULTY LINKING IT PLANNING FACTORS TOTHE BUSINESS Actions and Prevention • To prevent the problem, follow the guidance in the preceding paragraph. • Ifyou find that the planning effort is becoming overfocused on the IT factors,then you can take corrective action to work on the business factors

  29. HIGH MANAGEMENTEXPECTATIONS OF THEPLANNING EFFORT • Discussion • Management typically likes an IT plan. • They know the importance of IT. • They may not know much about the systems and technology. It may appearas a foreign language. • Today, however, few managers do not realize the needfor IT. IT plan can be seen by managementas a way of understanding all of the different IT activities from a managerialperspective.

  30. HIGH MANAGEMENTEXPECTATIONS OF THEPLANNING EFFORT Discussion cont… • Given that managers see the value of the plan, what would senior managersexpect? • First, they may have little experience in this • Second, they may wantIT to work on more strategic projects and work. They may see IT as doing tacticalstuff. They may feel they are not getting their money’s worth. • So the reasonableexpectation is that if they approve the plan, IT will shift to a more strategicfocus.

  31. HIGH MANAGEMENTEXPECTATIONS OF THEPLANNING EFFORT Impact • High expectations vs reality • have a wonderful,approved plan. However, you could be locked into some existing projects. • Maintenance and support consume a high percentage of resources. • Managementmay want IT to perform wonders but still not provide the money and resourcesas well as support for process change and improvement. • What is the effect of all of this? The expectations of management are notmet. Management is disappointed. They think they have given IT enough.

  32. HIGH MANAGEMENTEXPECTATIONS OF THE PLANNING EFFORT Impact cont… • Theysee the plan as work substitution in IT. Well, it cannot be the fault of management. • So who allocates the resources in IT? The IT manager. Blame him or herfor the problem. It has happened many times in the past. It will happen in thefuture.

  33. HIGH MANAGEMENTEXPECTATIONS OF THEPLANNING EFFORT • Detection You can sense a problem • if management is getting interested in the plan andits recommendations but is not dealing with the resource and money issues. • They are seeing the problem from one perspective.

  34. HIGH MANAGEMENTEXPECTATIONS OF THEPLANNING EFFORT Actions and Prevention • Lay out some potentialscenarios for what might happen When the IT planning effort is started. • We have used this time to emphasize thepolitical benefits of the plan — that of controlling and redirecting resources. • Another benefit is that it gives an opportunity for management to have the businessunits pay more attention to IT matters.

  35. LACK OF A DEFINED BUSINESS VISIONOR MISSION Discussion • Do all businesses have no mission or vision statements? • Most do • However,many employees may not see how these statements apply to them. After all,they just do their detailed work.

  36. LACK OF A DEFINED BUSINESS VISIONOR MISSION discussion cont… • Some companies have developed no vision or mission, for a number ofreasons. • The company could have recently been created or • the company haschanged. The existing mission or vision, which used to work, is now irrelevant. • Some managers do not see the value of the mission or vision. They may dealwith tangible goals.

  37. LACK OF A DEFINED BUSINESS VISIONOR MISSION cont… • Detection • check whether there is a mission or vision statement That is simple. • examine whether the mission or vision isstill valid and is valued by management. • If the statement was defined underprevious management, the new present managers may not view it as especiallyrelevant

  38. LACK OF A DEFINED BUSINESS VISIONOR MISSION detection cont… What do you do? • You lack much time to spend on this • proceed to map the existing statement • You can also analyze the mission or vision statement itself A completemission or vision should spell out the mission or vision in terms of the followingperspectives: • Shareholders • Management • Employees • Processes • Customers

  39. LACK OF A DEFINED BUSINESS VISIONOR MISSION detection cont… • Here you may uncover gaps and shortcomings. • How did this happen? Often,the mission or vision is defined in off-site management meetings. • There is timepressure to get this done, since it is often viewed as management overhead. • Then there is the cost of the outside coordinator and all of the management.The result — get it done, and now.

  40. LACK OF A DEFINED BUSINESS VISIONOR MISSION Actions and Preventions • several things to address here • First, you may have to handle thegaps • Take the list of the perspectives • Find the missing parts • Write downpotential elements for the mission or vision from that perspective. Then you canget this reviewed • Do the same when there is no mission or vision. You will need this for theIT plan. This seems unjust. Why should the IT planning effort have to fill inthe missing pieces? Isn’t this a management job? Sure, theoretically and academically

  41. LACK OF A DEFINED BUSINESS VISIONOR MISSION Actions and Preventions cont… • However, you need it as part of the planning effort, so it has to bedone. • This is not wasted work. • First, management will often appreciate it whensomeone uses the mission or vision. • Second, they can see the shortcomings of the old missionor vision. They can see the value of filling in the blanks.

  42. DIFFICULTY SHOWING THE BENEFITS OFTECHNOLOGY PROJECTS IN THE PLAN • Discussion • Let’s suppose you have a number of action items, strategies, and objectivesrelating to IT infrastructure and technology. • You understand these. The IT staffand supervisors understand them and see their need. • The problem here is how to convince nontechnical managers that thesethings are necessary. • After all, the network and systems may be operating fine,nearly at 100%. You could try to educate them on IT concepts. • This has beentried many times. It largely failed. Why? Because management has no interest.They may think that there are major problems in IT if things are so desperatethat managers have to be involved in IT.

  43. DIFFICULTY SHOWING THE BENEFITS OFTECHNOLOGY PROJECTS IN THE PLAN cont… Impact • The technology projects may not be improved, since management sees nodirect value to the business work. • This is more likely to occur if the managementis focused on the short term: make more profits; increase sales this year.They may see technology payoffs as long term.

  44. DIFFICULTY SHOWING THE BENEFITS OFTECHNOLOGY PROJECTS IN THE PLAN cont… Detection • You can detect this issue in IT if the individuals involved in the planningassumes that the benefits of the technology projects are obvious. • That is whyyou need to keep a business perspective on the IT planning efforts.

  45. DIFFICULTY SHOWING THE BENEFITS OFTECHNOLOGY PROJECTS IN THE PLAN cont… Aactions and Prevention • Convince listeners • how do you sell and market technology projects effectively in the plan,especially if you cannot rely on benefits? • Use the method of fear and intimidation. Ex, Turn to medicine: How does a doctorconvince you to have an operation? You will endure pain, loss of work, cost,etc. If you do not undergo the surgicalprocedure, you could be very sick or die. • That is it. Let’s use it. Take the currenttechnology and project how it will deteriorate over time. Then show how thedeterioration can affect the business processes. We have used this technique forover 20 years. It has proven to be most effective.

  46. LIMITED OR NO RESOURCES TO DO THE PLANNINGDiscussion • We have IT groups of three or four people • There were noadditional resources for planning • It is often the same with larger IT groups. • However, you can still develop the plan. Any kind of planning takes time. • ITplanning requires knowledge of • technology, • the business, and • the current ITarchitecture, systems, and activities • Many firms hire consultants to create the plan. Often, the plan is created,the consultant is paid, then work goes on, and the plan is shelved. • very little participation of IT managementand staff in the planning process. There wasno commitment.

  47. LIMITED OR NO RESOURCES TO DO THE PLANNING IMPACT • Some people use the lack of resources as an excuse not to construct the ITplan • Or they may try to do a rush job • Some may try to adapt a plan from theirpast work Detection What is the attitude of IT management toward the IT planning effort? If theysee it as a “big deal” or if it is a major challenge, then there is a problem.

  48. LIMITED OR NO RESOURCES TO DO THE PLANNINGActions and Prevention • Start with the attitude toward planning. • IT planning should not be viewedas a major project. • It should not require massive, dedicated resources. • In fact,if you have a number of dedicated planners, they canlose touch with reality. • They get overly involved in competitive, industrial, andtechnology assessments. • These may be useful, but they are not often critical

  49. LIMITED OR NO RESOURCES TO DO THE PLANNINGActions and Prevention • What is a suitable approach? • Treat IT planning as another limited project. • This should be work in addition to other work. That will put pressure to get theIT plan completed. • What is the role of consultants? • As advisors, they canprovide experience, guidelines, and checklists. • They can prevent you frommaking mistakes.

  50. LIMITED OR NO RESOURCES TO DO THE PLANNING Actions and Prevention How can you develop the IT plan quickly? • Create candidate lists for the planning items — issues, objectives, etc. • Have business and IT review these. People are better at reacting tothings than trying to invent planning elements on blank paper. • With the lists in hand, develop candidate tables that relate the planningelements. • For example, objectives versus issues table can reveal howthe objectives interact to resolve the issues. • The table of issues versus actionitems can show that the fulfillment of the actions takes care of the issues. • This table-and-list approach can be developed incrementally. • It is fairly easy tounderstand. simpler to update than some massive text

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